Spending in Rural and Non-Rural School Districts

Abstract

Nearly half (42%) of school districts in the United States are in rural areas and face challenges that may impact spending patterns. To understand spending changes and priorities, we examine school district spending in rural and non-rural districts since 1995 and estimate effects of a near-random funding increase from passing a close tax or bond election on spending. We compare the effects on multiple spending measures between rural and non-rural districts and between high- and low-poverty rural districts. Findings indicate funding challenges in rural districts. Rural districts are falling further behind non-rural districts in spending, particularly in instructional spending, and spending patterns from a funding increase suggest the staffing and sparsity challenges of rurality are more acute in high-poverty areas. Federal intervention to alleviate these challenges would allow rural districts to catch up to non-rural districts and direct adequate resources to instruction.